Subway struggles to keep up with fast-casual competition

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Subway Struggles to Keep Up With Fast-Casual Competition

Subway's revenue dipped for a second straight year in 2015, signaling the sandwich chain might be starting to feel the pressure from fast-casual restaurants.

Subway's revenue in 2015 was 4.3 percent lower than in 2014, bringing it down to $1.1 billion.

While the eatery opened 911 new stores in 2015, it closed 877. So it only added 34 stores. The company says opening new stores is currently on the back burner as it focuses on making the ones it has more profitable.

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Subway struggles to keep up with fast-casual competition
Amin Chakma puts up new menus featuring calorie counts at a Subway restaurant, Friday, June 29, 2007, in New York. New York is the first city in the country to require certain fast food restaurants to list calorie counts next to menu items in type that is at least as large as the price. New York City ushered in a new era of healthy eating on Sunday July 1, 2007 as a ban on trans fat-laden cooking oils in restaurants took effect. But not all fast-food eateries were following another new rule requiring them to post calorie counts on their menus. (AP Photo/Dima Gavrysh)
Liverpool FC Striker Daniel Sturridge prepares a sandwich for a fan at a SUBWAY� Restaurant on Friday, July 25, 2014 in Boston. (Photo by Gil Talbot/Invision for Subway/AP Images)
IMAGE DISTRIBUTED FOR SUBWAY - SUBWAY Global Ambassador Pelé, (right), the greatest footballer of all time, holds up his favourite SUBWAY tuna sandwich as Liverpool FC legend Robbie Fowler (left) looks on, at a SUBWAY Restaurant in London, Friday, March 20, 2015, prior to the Liverpool FC v. Manchester United football match. SUBWAY Restaurants is the Official Training Food Partner of Liverpool FC. (Photo by Mark Allan/Invision for SUBWAY Restaurants/AP Images)
IMAGE DISTRIBUTED FOR SUBWAY - Marcus Mariota, 2015 draft prospect and newest SUBWAY Famous Fan, poses with a life-size food statue made of SUBWAY sandwich ingredients in his likeness, including new SUBWAY guacamole, and a custom jersey with his signature number 8, on Wednesday, April 22, 2015, in Honolulu. Mariota joins a roster of SUBWAY Famous Fans including Clayton Kershaw, Mike Trout, Russell Westbrook, Robert Griffin III, Justin Tuck, Nastia Liukin and Pelé. (Photo by Marco Garcia /Invision for SUBWAY/AP Images)
2014 draft prospect Anthony Barr poses for a picture with a food sculpture of himself at a Subway restaurant in New York, Wednesday, May 7, 2014. (AP Photo/Seth Wenig)
Former U.S. Olympic Swimmer Michael Phelps, right, and Brazilian soccer legend Pele prepares sandwiches at a SUBWAY restaurant, during a event organized by SUBWAY, on Wednesday, Dec. 4, 2013 in Sao Paulo, Brazil. (Photo by Nelson Antoine/Invision for SUBWAY Restaurants/AP Images)
IMAGE DISTRIBUTED FOR SUBWAY - Linebacker Jarvis Jones, 2013 draft prospect and newest Famous Fan of SUBWAY, admires his hair on the life-size "Smokehouse BBQ Chicken" sculpture to announce Jones' official SUBWAY Famous Fan title, Tuesday, April 23, 2013, in New York. The sculpture is an artistic representation of the football star from the chest up, standing approximately three feet tall and made of almost entirely SUBWAY Smokehouse BBQ Chicken. Jarvis joins a roster of fellow Famous Fans that include Robert Griffin III, Justin Tuck, Michael Strahan, Blake Griffin and Michael Phelps.† (Photo by Diane Bondareff/Invision for SUBWAY/AP Images)
COMMERCIAL IMAGE - Apolo Ohno takes a break from his hectic schedule and visits a local SUBWAY location to enjoy his training food of choice on Tuesday, July 31, 2012 in London. (Photo by Jon Furniss/Invision for SUBWAY/AP Images)
Customers join Celebrity Chef Robert Irvine as he announces that he will be eating avocado every day of Avocado Season at SUBWAY® at the Universal CityWalk SUBWAY® restaurant on Friday June 8, 2012 in Los Angeles. (Photo by Casey Rodgers /Invision for SUBWAY® /AP Images)
US sandwich maker Subway co-founder and chairman for the world, the self-made billionaire Fred DeLuca, poses with a sandwich in a Parisian Subway restaurant on June 17, 2011 prior to attend a meeting with the press as part of the 10th anniversary of Subway France. Subway has seen its number of restaurants balloon to 33,749 across the globe as of January 1, making it the world's largest fast food chain ahead of McDonald, with 32,737 restaurants, as reported on March 11, 2011. AFP PHOTO ERIC PIERMONT (Photo credit should read ERIC PIERMONT/AFP/Getty Images)
CHICAGO, IL - DECEMBER 29: A new Turkey and Bacon Melt Wrap is seen December 29, 2003 in Chicago. Subway restaurants today started to offer two Atkins Nutritionals, Inc.-endorsed low-carbohydrate wraps. The Turkey and Bacon Melt Wrap with Monterey cheddar cheese and the Chicken Bacon Ranch Wrap with Swiss cheese. Both Atkins-Friendly Wraps are available in the U.S. and Canada and have 11 grams Net Carbs or less. The wrap itself, which is made with wheat gluten, cornstarch, oat, sesame flour and soy protein, has only 5 grams Net Carbs. Subway Restaurants is the first quick serve restaurant to partner with Atkins Nutritionals Inc. (Photo by Tim Boyle/Getty Images)
CHICAGO, IL - DECEMBER 29: A new Turkey and Bacon Melt Wrap is seen December 29, 2003 in Chicago. Subway restaurants today started to offer two Atkins Nutritionals, Inc.-endorsed low-carbohydrate wraps. The Turkey and Bacon Melt Wrap with Monterey cheddar cheese and the Chicken Bacon Ranch Wrap with Swiss cheese. Both Atkins-Friendly Wraps are available in the U.S. and Canada and have 11 grams Net Carbs or less. The wrap itself, which is made with wheat gluten, cornstarch, oat, sesame flour and soy protein, has only 5 grams Net Carbs. Subway Restaurants is the first quick serve restaurant to partner with Atkins Nutritionals Inc. (Photo by Tim Boyle/Getty Images)
CHICAGO, IL - DECEMBER 29: Subway restaurant store owner Shirish Dave prepares a new Chicken Bacon Ranch Wrap December 29, 2003 in Chicago. Subway restaurants today started to offer two Atkins Nutritionals, Inc.-endorsed low-carbohydrate wraps. The Turkey and Bacon Melt Wrap with Monterey cheddar cheese and the Chicken Bacon Ranch Wrap with Swiss cheese. Both Atkins-Friendly Wraps are available in the U.S. and Canada and have 11 grams Net Carbs or less. The wrap itself, which is made with wheat gluten, cornstarch, oat, sesame flour and soy protein, has only 5 grams Net Carbs. Subway Restaurants is the first quick serve restaurant to partner with Atkins Nutritionals Inc. (Photo by Tim Boyle/Getty Images)
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Analysts for Bloomberg blamed Subway's hardships on the rise of fast-casual dining options like Panera Bread.

On top of that, the company found itself in the middle of a public relations nightmare last year after longtime Subway spokesman Jared Fogle pleaded guilty to child pornography charges and was sentenced to 15 years in prison.

RELATED: See images of the Jared Fogle scandal

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Subway struggles to keep up with fast-casual competition
Former Subway pitchman Jared Fogle arrives at the federal courthouse in Indianapolis, Thursday, Nov. 19, 2015. Fogle is due to formally plead guilty and be sentenced on charges of trading child pornography and paying for sex with minors. (AP Photo/Michael Conroy)
Former Subway pitchman Jared Fogle arrives at the federal courthouse in Indianapolis, Thursday, Nov. 19, 2015. Fogle is due to formally plead guilty and be sentenced on charges of trading child pornography and paying for sex with minors. (AP Photo/Michael Conroy)
Former Subway pitchman Jared Fogle leaves the Federal Courthouse in Indianapolis, Wednesday, Aug. 19, 2015 following a hearing on child-pornography charges. Fogle agreed to plead guilty to allegations that he paid for sex acts with minors and received child pornography in a case that destroyed his career at the sandwich-shop chain and could send him to prison for more than a decade. (AP Photo/Michael Conroy)
Former Subway pitchman Jared Fogle leaves the Federal Courthouse in Indianapolis, Wednesday, Aug. 19, 2015 following a hearing on child-pornography charges. Fogle agreed to plead guilty to allegations that he paid for sex acts with minors and received child pornography in a case that destroyed his career at the sandwich-shop chain and could send him to prison for more than a decade. (AP Photo/Michael Conroy)
INDIANAPOLIS, IN - AUGUST 19: Senior Litigation Counsel, Steven DeBrota, explains the charges against Subway Pitchman, Jared Fogle, during a press conference on August 19, 2015 at the United States Attorneys Office in Indianapolis, Indiana. Fogle was part of a Federal Investigation which included a raid of his home in July 2015. (Photo by Ron Hoskins/Getty Images)
Former Subway pitchman Jared Fogle leaves the Federal Courthouse in Indianapolis, Wednesday, Aug. 19, 2015 following a hearing on child-pornography charges. Fogle agreed to plead guilty to allegations that he paid for sex acts with minors and received child pornography in a case that destroyed his career at the sandwich-shop chain and could send him to prison for more than a decade. (AP Photo/AJ Mast)
INDIANAPOLIS, IN - AUGUST 19: Jared Fogle (R) gets into a car in front of the courthouse on August 19, 2015 in Indianapolis, Indiana. Fogle was part of a Federal Investigation which included a raid of his home in July 2015. (Photo by Joey Foley/Getty Images)
US Attorney Josh Minkler, center, Indianapolis Police chief Richard Hite, left, and Assistant US Attorney Steven D. DeBrota discuss the child pornography case against former Subway restaurant spokesman Jared Fogle following his hearing in Indianapolis, Wednesday, Aug. 19, 2015. Fogle agreed to plead guilty to allegations that he paid for sex acts with minors and received child pornography in a case that destroyed his career at the sandwich-shop chain and could send him to prison for more than a decade. (AP Photo/Michael Conroy)
Subway restaurant spokesman Jared Fogle walks to a waiting car as he leaves his home, Tuesday, July 7, 2015, in Zionsville, Ind. FBI agents and Indiana State Police have removed electronics from the property. FBI Special agent Wendy Osborne said that the FBI was conducting an investigation in the Zionsville area but wouldn't confirm it involved Fogle. (AP Photo/Michael Conroy)
Subway restaurant spokesman Jared Fogle walks to a waiting car as he leaves his home Tuesday, July 7, 2015, in Zionsville, Ind. FBI agents and Indiana State Police have removed electronics from the property. FBI Special agent Wendy Osborne said Tuesday that the FBI was conducting an investigation in the Zionsville area but wouldn't confirm it involved Fogle. (AP Photo/Michael Conroy)
Federal authorities walk out of the home of Subway restaurant spokesman Jared Fogle, Tuesday, July 7, 2015, in Zionsville, Ind. FBI agents and Indiana State Police have removed electronics from the property. FBI Special agent Wendy Osborne said Tuesday that the FBI was conducting an investigation in the Zionsville area but wouldn't confirm it involved Fogle. (AP Photo/Michael Conroy)
Federal authorities walk outside of the home of Subway restaurant spokesman Jared Fogle, Tuesday, July 7, 2015, in Zionsville, Ind. FBI agents and Indiana State Police have removed electronics from the property. (AP Photo/Michael Conroy)
Federal authorities walk outside of the home of Subway restaurant spokesman Jared Fogle, Tuesday, July 7, 2015, in Zionsville, Ind. FBI agents and Indiana State Police have removed electronics from the property. (AP Photo/Michael Conroy)
Subway restaurant spokesman Jared Fogle walks to a waiting car as he leaves his home Tuesday, July 7, 2015, in Zionsville, Ind. FBI agents and Indiana State Police have removed electronics from the property. FBI Special agent Wendy Osborne said Tuesday that the FBI was conducting an investigation in the Zionsville area but wouldn't confirm it involved Fogle. (AP Photo/Michael Conroy)
Federal authorities walk outside of the home of Subway restaurant spokesman Jared Fogle, Tuesday, July 7, 2015, in Zionsville, Ind. FBI agents and Indiana State Police have removed electronics from the property. (AP Photo/Michael Conroy)
Federal authorities walk outside of the home of Subway restaurant spokesman Jared Fogle, Tuesday, July 7, 2015, in Zionsville, Ind. FBI agents and Indiana State Police have removed electronics from the property. (AP Photo/Michael Conroy)
Subway restaurant spokesman Jared Fogle walks to a waiting car as he leaves his home Tuesday, July 7, 2015, in Zionsville, Ind. FBI agents and Indiana State Police have removed electronics from the property. FBI Special agent Wendy Osborne said Tuesday that the FBI was conducting an investigation in the Zionsville area but wouldn't confirm it involved Fogle. (AP Photo/Darron Cummings)
Federal authorities walk outside of the home of Subway restaurant spokesman Jared Fogle, Tuesday, July 7, 2015, in Zionsville, Ind. FBI agents and Indiana State Police have removed electronics from the property. (AP Photo/Michael Conroy)
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